FTSE 100 gains as investors hold out for economic rebound

London's FTSE 100 rose on Friday at the end of a choppy week as investors weighed optimism about a revival in business activity against a surge in global coronavirus infections, while easyJet gained after taking more steps to boost liquidity.

London's FTSE 100 rose on Friday at the end of a choppy week as investors weighed optimism about a revival in business activity against a surge in global coronavirus infections, while easyJet gained after taking more steps to boost liquidity. The low-cost airline rose 1.4% as it reported the sale and leaseback of six A320neo aircraft, shoring up its balance sheet to ride out the slump in air travel due to the COVID-19 pandemic.

The blue-chip FTSE 100 was up 0.7%, with BP Plc and Royal Dutch Shell Plc among the biggest boosts. The mid-cap FTSE 250 added 0.4%. "Stocks are rallying based on an expectation of further stimulus measures due to the rise in U.S. infections," said Andrea Cicione, strategist at TS Lombard. "The market is really trying to find something to cheer and is in a 'bad news is good news' mood."

Fears about another lockdown due to the resurgence in coronavirus infections have dominated global equity markets this week, and the export-laden FTSE 100 is now on course to end the week more than 1% lower. UK investors are also closely tracking Brexit negotiations, with the transition period, during which Britain remains in the EU single market and customs union, set to expire at the end of the year.

The next round of talks begins on Monday and will be held face-to-face for the first time since the coronavirus began to spread in March. Among individual stocks, Aston Martin slumped 12.9% after the carmaker said it would issue new shares worth up to 20% of its existing equity capital, while pub operator Marston's fell 4.6% on an uncertain short-term financial outlook.

The travel index added 0.6% as Environment Secretary George Eustice said Britain was working on a plan to relax its quarantine for international travellers with some countries.